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Grayscale: US Dollar Reputation Challenged by Debt and Inflation Pressure, Cryptocurrencies Could Become Alternative Store of Value
Summary: According to reports, Grayscale's latest macro research report points out that the US government's commitment to maintaining low inflation is facing a credibility crisis due to high debt levels, rising interest rates, and continued deficit spending. If investors begin to doubt the stability of the US dollar as a store of value, they may turn ...
According to reports, Grayscale's latest macro research report points out that the US government's commitment to maintaining low inflation is facing a credibility crisis due to high debt levels, rising interest rates, and continued deficit spending. If investors begin to doubt the stability of the US dollar as a store of value, they may turn to alternative assets such as cryptocurrencies. The report states that Bitcoin and Ethereum, as core currency assets in the crypto market, have limited and transparent supply mechanisms, giving them the potential to hedge against fiat currency devaluation in a macro environment. Similar to gold, their value comes from 'not being subject to passive expansion of supply due to government debt needs.' Grayscale emphasizes that the unsustainable growth of public debt is driving the increasing global demand for cryptocurrencies, but if governments strengthen fiscal discipline and reaffirm central bank independence in the future, it may weaken the demand for cryptocurrencies.
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Link: Grayscale: US Dollar Reputation Challenged by Debt and Inflation Pressure, Cryptocurrencies Could Become Alternative Store of Value [Copy]
